ASX and Media Releases

Newcastle Gas Storage Facility supplies first gas for NSW network

Friday, 16 October 2015

AGL Energy Limited’s (AGL) $310 million Newcastle Gas Storage Facility (NGSF) has achieved another major milestone with the first supply of gas into the NSW network.

AGL Executive General Manager Group Operations, Doug Jackson, said today the successful operation, conducted as an important test of the NGSF’s capabilities, comes just five months after the facility was officially opened.

“The NGSF has been constructed as an important link in NSW’s natural gas infrastructure, providing energy security and employment around the Greater Newcastle Region,” Mr Jackson said.

“The NGSF’s 30 metre tall storage tank will be used to support local gas supplies during times of peak demand and, if there was a major interruption to NSW gas supplies, provide the storage capability for up to two weeks of gas for the Greater Newcastle region.

“The gas used in this operation had been chilled, liquefied and stored in the tank before being converted back to gas and piped into the network,” he said.

“A total of 6.3 terajoules of gas (about the same amount as 300 four-person households would use in a year) was sent out in a series of controlled tests by the NGSF operating staff to check plant safety, performance and gas quality.

“Everything proved fully functional and this is a great outcome for everyone involved and a proud moment for AGL,” Mr Jackson said.

The gas supply operation is the latest important milestone for the NGSF following:

Commencement of construction in August 2012

The arrival of first gas at the NGSF in April 2015

The official opening of the facility in June 2015

Supply of gas to Tomago Aluminium Company in June 2015

Shipment of the first tanker load of LNG to a commercial client in the Hunter Valley in August 2015

Being awarded best NSW Regional Project by the Australian Institute of Project Management.

“The NGSF has now demonstrated it can import gas, load tankers, directly supply gas to Tomago and inject gas into the network. The operations team is now filling the storage tank ready for winter 2016, regularly loading trucks and maintaining supply to Tomago,” Mr Jackson said.

About AGL

AGL is one of Australia’s leading integrated energy companies. It is taking action to responsibly reduce its greenhouse gas emissions while providing secure and affordable energy to its customers. Drawing on over 175 years of experience, AGL serves its customers throughout eastern Australia with meeting their energy requirements, including gas, electricity, solar PV and related products and services. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, solar, landfill gas and biomass.